Newsletter #36 | The New Recession Indicators.
Lady Gaga’s back to her ‘weird-pop’ roots, peplum tops and skinny jeans are back, and Adam Driver’s back on TV. All, according to TikTok, ‘recession indicators’. Things that have absolutely nothing to do with economic circumstances, but just feel right.
While Mayhem’s release wasn’t (we assume) timed to coincide with the last month of economic uncertainty, it has been the soundtrack to global financial turbulence impacting brands and consumers alike.
Despite strong evidence demonstrating the negative impacts of cutting advertising spend during a recession, many organizations cut marketing spend early as an ‘easy’ way to save money.
But it’s worthwhile returning to the history books and highlighting brands that have continued to invest in marketing during economic downturns, and came out stronger on the other side.
Advertising’s Sticking Power.
William Wrigley arrived in Chicago in 1891 with just $32 and a box of soap to sell. To boost sales, he offered baking powder as a free gift, only to find customers wanted the bonus more than the product. He switched to selling baking powder, this time throwing in chewing gum as the incentive. Again, the freebie won out. Realizing where the real demand was, Wrigley dropped everything else and went all in on gum, turning a giveaway into a global business.
Wrigley’s business was built on marketing investment, especially during economic downturns.
In 1907 there was a mini-market crash. Brands pulled their advertising spend in response, and ad rates dropped. Not deterred, Wrigley borrowed $250,000 to run an advertising campaign. This investment took Wrigley from $170,000 to $3 million in annual turnover in just 3 years.
During WWII, Wrigley’s focus switched to providing supplies for soldiers. But while they weren’t selling gum to the general population, the company never stopped advertising. They ran ads featuring empty packets of gum urging audiences to ‘remember the wrapper.’ When sales started again in 1946, they surpassed pre-war numbers immediately.
As William Wrigley put it, “Anyone can make gum. The trick is to sell it.”
Wrigley’s became part of the Mars Corporation in 2008. Another family business, Mars had its start in Tacoma, Washington, where Frank Mars started making and selling butter cream candy in 1911.
Mars’ approach to advertising has always been ahead of its time (and often leaning towards the futuristic). In 1939 the company sponsored a local radio quiz show in Chicago, understanding the importance of the medium for target consumers. In 1954 Mars began to print a small ‘m’ on each M+M candy to differentiate them from competitors. In 1981 Mars became the first candy in space, with M+M’s chosen by astronauts as part of their food supply.
Creative Quality = The Constant.
Mars’ commitment to creative excellence has remained steadfast as the company’s presence increased through new brands, markets, and advertising formats. As
Anja Spielmann
, VP, Customer Experience, Mars, explained: “Consumer journeys got so much more complex from a linear journey about 15, 20 years ago, to really a multiple touchpoint journey.”
Over the past 5 years
Mars
has worked with CreativeX across 50 brands and 65 markets to meet customers across this journey. They’ve unlocked media efficiency, driven measurable sales lift and built a culture of continuous creative upskilling.
As
Sorin Patilinet
put it: “Today we have a multitude of platforms. We have a completely fragmented media environment. But the consumer has to see one unified message because if that message is not coming from a single point of view, you will not be able to build a distinctive memory.”
In times of economic strain, cutting creative investment might seem pragmatic. But history, from William Wrigley to Frank Mars, shows the opposite is true. Creative quality isn’t just about storytelling; it’s about resilience, consistency, and unlocking efficiencies at scale.
As brands brace for economic headwinds, the smartest marketers are boosting, not neglecting, their creative quality. When budgets shrink, every impression has to count.
And in the words of Sorin Patilinet: “The quality of advertising is what makes or breaks your campaign.”